Gov’t Intervenes in Busoga Sugarcane Prices; Millers Agree on Shs125,000 Minimum

Government, through the Ministry of Trade, Industry and Cooperatives, has intervened in the pricing of sugarcane in the Busoga region, with sugar millers agreeing to set a minimum price of Shs125,000 per tonne.

The decision follows complaints from sugarcane out-growers who reported earning as little as Shs90,000 per tonne, prices they said were unsustainable given rising input and transport costs.

The new minimum price was agreed during a meeting held on Friday, December 19, 2025, at the Ministry of Trade offices, involving officials from the ministry, the Sugar Industry Stakeholders Council, and sugar millers operating in Busoga.

The meeting brought together six millers—Sugar Corporation of Uganda Limited (SCOUL), Kakira Sugar, GM Sugar, Kamuli Sugar, Mayuge Sugar and Bugiri Sugar—as well as the State Minister for Cooperatives and Member of Parliament for Bulamogi North West, Hon. Frederick Ngobi Gume, the Chairperson of the National Biofuels Committee and former minister, Daudi Migereko, and senior ministry officials.

While chairing the meeting, the Minister of Trade, Industry and Cooperatives, Hon. Francis Mwebesa, said his ministry had received numerous complaints from farmers over what he described as arbitrary reductions in sugarcane prices.

“We have been receiving concerns from sugarcane out-growers regarding arbitrary low sugarcane prices, which we consider valid and which directly impact farmer livelihoods, mill supply stability, and the social and political stability in sugarcane-growing areas,” Mwebesa said.

Farmers particularly raised concerns against GM Sugar, Kaliro Sugar, Bugiri Sugar and Kamuli Sugar, accusing them of offering prices below those prescribed under the pricing formula in the Sugar Amendment Act, 2025. Out-growers also complained about a continued five per cent deduction for trash, despite a directive from the Sugar Industry Stakeholders Council abolishing the charge.

Mwebesa warned that persistently low returns could undermine the sustainability of the sugar sector. “If farmers earn returns that are too low compared to their input and transport costs, long-term production, investment and sector resilience are at risk,” he said.

The minister questioned why some millers had reduced prices during an election period, noting that such actions could affect farmers’ incomes and political stability. “Sugarcane pricing should be determined by the Sugar Industry Stakeholders Council, as clearly stipulated in the Sugar Amendment Act 2025,” he added.

Responding on behalf of GM Sugar, Henry Kata said pricing disparities were influenced by varying operational costs. “Although the Sugar Amendment Act provides a pricing formula, there are other factors at play. Our production costs differ, and that is why prices may vary,” Kata explained.

Hon. Gume urged millers offering lower prices to revise them upwards for two months, pending a nationwide review by the Sugar Industry Stakeholders Council, saying the move would help maintain social and political stability in Busoga.

Former minister Daudi Migereko echoed the call, saying, “We have always considered you development partners. That is why we request a revision of your prices as we wait for the sugar council to resolve the matter.”

The millers, led by Akash of GM Sugar, Yogesh Agri and Ismail Nasifu of Kamuli Sugar, unanimously agreed to set Shs125,000 as the minimum price per tonne across Busoga for the next two months.

The Chairperson of the Sugar Industry Stakeholders Council, Rajbir Singh Rai of Kinyara Sugar, urged millers to comply with the law, saying it provides a clear pricing framework to promote harmony and stability in the sugar sector.